HC Deb 09 May 1968 vol 764 cc133-5W
Mr. Arthur Lewis

asked the Secretary of State for Employment and Productivity (1) whether she is aware that the current financial statement and accounts of Leslie and Godwin (Holdings) Limited, show that the directors' fees and emoluments had increased from £51,042 in 1966 to £97,402 in 1967, accounted for in part by the increased number of directors; and whether she will refer the average increase of £716 extra to each director to the National Board for Prices and Incomes;

(2) whether she is aware that the current financial statement and accounts of Pointer Group (Holdings) Limited and Subsidiaries shows that directors' remunerations for the year ended 1967 was £35,643, as compared with £32,125 for 1966; and whether she will refer these increases to the National Board for Prices and Incomes.

Mr. Hattersley

The voluntary early warning arrangements and the scrutiny of claims and settlements by my Department are intended to apply to negotiating groups and not to individuals. The incomes policy does, however, apply to all those in receipt of employment incomes, and paragraph 50 of the White Paper "Productivity, Prices and Incomes Policy in 1968 and 1969" makes it clear that the principles of the policy apply equally to directors' remunerations as to other forms of incomes. We are keeping the position under review.

Mr. Arthur Lewis

asked the Secretary of State for Employment and Productivity whether she is aware that a large number of company reports show that, for the year ending 1967, company directors were receiving increases in their emoluments varying between 5 per cent. and 10 per cent.; and, as this causes concern to workers who are being prevented from obtaining 5 per cent. on more limited incomes, what proposals she has for bringing about a fair system of payment between these two sections of workers;

(2) to what extent, during the period of the Government's prices and incomes policy, company directors with emoluments of more than £4,000 per annum have been obtaining increases of more than the Government's 3½ per cent. norm; and whether she will refer all such increases to the National Board for Prices and Incomes;

(3) whether she is aware that a number of public companies annual reports show that many company directors have had salary/fees/emoluments, etc., increased by more than the maximum laid down in the prices and incomes policy; and whether she will examine these reports and refer them to the National Board for Prices and Incomes;

(4) whether she is aware that, during the period of severe restraint, many company directors with incomes between £5,000 and £25,000 per annum have been increasing their emoluments by more than the permitted 3½ per cent. norm; and what action she intends to take to prevent these increases varying between 5 per cent. and 10 per cent.

Mr. Hattersley

Comprehensive and detailed information about the levels of, and changes to, the emoluments of company directors is not available. Paragraph 50 of the White Paper "Productivity, Prices aid Incomes Police in 1968 and 1969" makes it clear that the principles of incomes policy apply to the remuneration of company directors as they do to all other forms of incomes. This has been the case in the preceding stages of the policy. The Government expect company directors to show the same sense of responsibility towards these principles as is being asked of wage and salary earners generally.